Al Rajhi Bank Achieves Net Earnings of SR 1,602m in the first quarter of 2008

19 August 2008

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Mr. Abdullah Sulaiman Al Rajhi, CEO of Al Rajhi Bank, has announced that the bank achieved net earnings of SR 1,602 Million in Q12008 compared to SR 1,569 Million for the same period last year, representing growth of 2.1%.

The CEO pointed out that the financial results for the period ending on 31/3/2008 reflected the increase of the net investment income which amounted to SR 2,030 Million compared to SR 1,823 Million posted in Q12007 (representing growth of 11.4%). The income from banking services amounted to SR 454 Million compared to SR 385 Million (representing growth of 18%). Total income from banking operations for Q12008 reached SR 2,485 Million compared to SR 2,208 Million for the same period last year (representing growth of 12.5%).

The shareholders’ equity amounted to SR 24 Billion compared to SR 20.8 Billion as at March 31, 2007 (representing growth of 15.6%). Assets amounted to SR 143 Billion compared to SR 113.9 Billion as at March 31, 2007 (representing growth of 25.6%) and customers deposits amounted to SR 101.4 Billion, compared to SR 81 Billion as at March 31, 2007 (representing growth of 25.1%). The return on assets amounted to 4.8% in the first quarter of 2008 while the rate of return on shareholders’ equity amounted to 26.9%. Earnings per share amounted to SR 1.07 compared to SR 1.05 in Q12007 (representing growth of 1.9%). The Bank continued its policies to increase and sustain its various provisions to support and further enhance its financial standing.

Mr. Abdullah Al Sulaiman Al Rajhi went on to say that the Bank continues to realize growth through diversification of income resources and development of the Investment and Corporate Banking sectors together with the Retail Banking. The Bank continues to focus and care for its customers across all sectors through the delivery of quality products and services. The CEO concluded by thanking the bank's customers for their support and confidence in the Bank.

During the quarter the bank received several awards from Euromoney and The Asian Banker for achievements in retail and corporate banking, including Best finance deals based on Islamic structures for various projects in the field of power, infrastructure, constructions and telecommunications.